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| Scott McKenzie’s “San Francisco (Be Sure to Wear Flowers in Your Hair)” was a ballad for the exciting things occurring in the city when it was released in May 1967. In reality, the song was produced by people from Los Angeles looking to promote a concert they were planning in the area. But that didn’t stop it from being a hit and serving as a defining song of the Summer of Love. Nearly 60 years later, Elon Musk is also looking to woo young people to Northern California, albeit without a melody. The billionaire tweeted on Monday that it’s “important for more people to come to work in San Francisco or the rest of the city can’t survive.” Musk’s comments come just a day after he tweeted that he planned to keep the headquarters for the company formerly known as Twitter in San Francisco (plans he announced in spite of a sign drama that prompted London Breed, the city’s mayor, to say Musk couldn’t be “above the rules”). The City by the Bay has had a tough go of it these past few years. Homelessness remains a major problem, and commercial real estate has taken a massive blow in the wake of the coronavirus pandemic. Even the city’s biggest mall can’t make ends meet. But the biggest threat to the city is simply how expensive it’s become to live in. The median rent for a one-bedroom property in San Francisco is $3,000, according to Zillow, which is 84% higher than the national median. And while that might seem like a drop in the bucket for senior tech employees, making that type of rent payment is no easy task for entry-level employees. That’s why Alistair Barr, Insider’s global tech editor and a Bay Area resident for nearly two decades, believes the San Francisco ecosystem that’s been a breeding ground for countless tech companies is at risk. For decades, new grads headed to the Bay Area in search of jobs at startups or in Big Tech with dreams of hitting it big. And while only a fraction of them would achieve massive success, those who did would typically stay in the area to seed the next generation with angel investments. And on it goes. But with the cost of living so high in the region, Alistair said the cycle is at risk of being broken. Instead, less cost-prohibitive cities are becoming more attractive. Take Raleigh, North Carolina, which is part of the so-called Research Triangle. Tech giants like Google and Apple have come to the region, where the median rent for a one-bedroom property is $1,437. Who wouldn’t take that deal? Let us know what you think. Elon Musk says more people need to come to work in San Francisco or the city will struggle to survive Sawdah Bhaimiya Aug 1, 2023, 5:17 AM PDT Insider (newsletter@insider.com) Elon Musk said Twitter’s headquarters would stay in San Francisco. LUDOVIC MARIN/POOL/AFP via Getty Images; Tayfun Coskun/Anadolu Agency via Getty Images Elon Musk is encouraging workers to move to San Francisco to help the city survive its doom loop. The billionaire said Twitter’s headquarters would remain in the city despite its ongoing struggles. Other tech companies, including Meta, Snap, and Salesforce, have reduced office space in the city. By clicking “Sign Up,” you also agree to marketing emails from both Insider and Morning Brew; and you accept Insider’s Terms and Privacy Policy. Click here for Morning Brew’s privacy policy. Elon Musk is encouraging people to move to San Francisco and work there because he says the “city can’t survive” unless it overcomes the urban doom loop. The billionaire owner of Twitter tweeted on Monday that it was “important for more people to come to work in San Francisco or the rest of the city can’t survive.” Musk recently had the Twitter sign removed from Twitter’s headquarters in San Fransisco. The company recently changed its logo to X, and a giant sign was put on top of the building that has irritated some neighbors. Musk tweeted on Sunday that he wouldn’t move Twitter’s headquarters out of the city despite ongoing reports about the city’s deterioration. He wrote in the tweet: “Many have offered rich incentives for X (fka Twitter) to move its HQ out of San Francisco. Moreover, the city is in a doom spiral with one company after another left or leaving. Therefore, they expect X will move too. We will not. “You only know who your real friends are when the chips are down. San Francisco, beautiful San Francisco, though others forsake you, we will always be your friend.” The urban doom loop refers to negative beliefs about a city deterring people from living there and causing those issues to proliferate. San Francisco is struggling with a huge homeless population and increased crime, including theft and assault, according to retailers. In May, Musk said that downtown San Francisco was a “once beautiful and thriving” area but that it had become a “derelict zombie apocalypse.” The city has seen retailers such as Walgreens, Whole Foods, Anthropologie, and Nordstrom close stores because of rising crime and concerns about employee safety. Critics said these store closures were also a result of changing consumer-shopping habits and retailers closing pricier locations. Major tech firms such as Meta, Snap, Salesforce, and Paypal have also reduced office space in the city because employees continued to work from home after the pandemic. |
